We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Savings Or High Income Funds
Options
The_Fiddler_2
Posts: 565 Forumite
Are Savings or High Income Funds better in this climate for money that won't be touched for a few years?
Noobie (not so 
) trying to make loads a dosh - please bear with all my questions :beer: Thanks
) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0
Comments
-
The_Fiddler wrote: »Are Savings or High Income Funds better in this climate for money that won't be touched for a few years?
Thats a bit like saying whats better, eggs or bananas?
High income funds are typically medium to medium/high risk whereas savings is cash and nil risk (ignoring recent solvency issues obviously).
Its a bit of a jump to go from nil risk to medium/high and ignore the inbetween.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
What is in between?Noobie (not so) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0
-
As Funds go, I didn't think High Income ones were that risky - are they really?Noobie (not so) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0
-
The_Fiddler wrote: »As Funds go, I didn't think High Income ones were that risky - are they really?
The sector has some lower risk examples and higher risk examples. It really depends on their weighting to certain industries. However, generally, on 1 -10 scale (1=cash) then these come out between 6 and 8.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
How does that risk compare to funds in general? Are there lower risk categories?Noobie (not so) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0
-
This post may help you, I'm just going through it myself:
http://forums.moneysavingexpert.com/showthread.html?t=13135110 -
The_Fiddler wrote: »How does that risk compare to funds in general? Are there lower risk categories?
You can get unit trust funds from risk 2 through to risk 10. (again, treating cash as 1). One thing to note is that the last 12 months has seen investments that are historically known as low risk suffer greater losses than they normally would. So, just because its low risk, its doesnt mean you dont face a risk of loss. However, in the long run, you would expect the degree of loss to be lower than the higher risk funds.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
the reason why high income funds yield more than savings is because they are higher risk - you have to decide if the higher yield compensates you for your taking on the higher risk0
-
the reason why high income funds yield more than savings is because they are higher risk - you have to decide if the higher yield compensates you for your taking on the higher risk
Yes I know that
, but I was wondering where high income funds lay in the scheme of funds generally hence my questions. Noobie (not so) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0 -
You can get unit trust funds from risk 2 through to risk 10. (again, treating cash as 1). One thing to note is that the last 12 months has seen investments that are historically known as low risk suffer greater losses than they normally would. So, just because its low risk, its doesnt mean you dont face a risk of loss. However, in the long run, you would expect the degree of loss to be lower than the higher risk funds.
Is there anywhere that tabulates this data?
Thanks for your answers dunstonh
Noobie (not so) trying to make loads a dosh - please bear with all my questions :beer: Thanks 0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards